GST Sugam Return
Updated on: Jul 6th, 2021
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3 min read
In May 2019, a prototype of the offline tool has been shared on the GST Portal to give the users a look and feel of the tool. The look and feel of the offline tool would be the same as that of the online portal.
The Government has announced that simplified GST returns (Sahaj & Sugam) filing mechanism would be introduced for taxpayers with a turnover below Rs. 5 crores. These returns would require lesser information to be declared as when compared to a regular taxpayer
Latest Updates
14th March 2020*
The new GST return system will be implemented from October 2020.
The present return filing system (GSTR-1, 2A & 3B) will continue until September 2020.
*Subject to CBIC notification
What is GSTR SUGAM?
GST Sugam is a proposed simplified returns form which is to be introduced by the GST Council from October 2019 onwards. A taxpayer with a turnover of up to Rs. 5 crores in the financial year will get an option to file this return. This form will be made available to only those small taxpayers engaged in both B2B (Business to Business – supplies to GST registered persons), and B2C (Business to Consumer – supplies to consumers and unregistered persons under GST) supplies in India. In the 28th GST council meeting, members approved quarterly GST returns (Sahaj & Sugam) filing for small taxpayers with a turnover of up to Rs.5 crores (as against the initial limit of Rs.1.5 crores). However, the tax is to be paid monthly via a challan.
Who can file GSTR SUGAM?
Small taxpayers with a turnover of up to Rs 5 crores and engaged in both B2B and B2C supplies can opt for the GSTR SUGAM form to file their quarterly returns.
What are the contents of GSTR SUGAM?
GST Sugam consists of 2 annexures to the return and the return itself.
NOTES ON ANNEXURES:
- The annexures shall be uploaded before filing the return for any tax period.
- Details of the invoices relating to outward supplies made to registered persons (B2B) can be uploaded in real-time during the quarter.
- Supplies other than those made to consumers and unregistered persons (B2C) and registered persons (B2B) in the domestic market cannot be made through this annexure.
- Those who have transactions in the international market will file the annexure for quarterly returns.
- This annexure can also be used to report debit and credit notes relating to supplies made to registered persons (B2B).
- At least, a four-digit level reporting of HSN code will be mandatory.
| Table | Name | Details |
| Table 1 and 2 | Basic details | GSTIN, trade name, legal name, ARN, and the date of filing are auto-populated. |
| Table 3 | Summary of outward supplies and inward supplies attracting a reverse charge | Details of outward supplies to consumers and unregistered persons and inward supplies on which reverse charge is applicable will be auto-populated in this table from Annexure 1. Details about advances and liabilities pertaining to prior period need to be inputted. |
| Table 4 | Summary of inward supplies for claiming ITC | All the details will get auto-populated in this table from Annexure 1 and 2. Details about ITC reversal needs to be manually inputted. |
| Table 5 | Amount of TDS/TCS credit received in electronic cash ledger | Amounts will be credited in the electronic cash ledger based on returns filed by deductors in Form GSTR -7 and GSTR-8. |
| Table 6 | Interest and late fee liability | Interest and late filing fee arising due to the late filing of the return, late payment of taxes and uploading of preceding period invoices will be auto-calculated by the system. Any other interest payment liability should be self-assessed by the taxpayer. |
| Table 7 | Payment of tax | The taxpayer can make payment by utilizing ITC and then the balance can be paid in cash. However, payment arising due to reverse charge, interest, and penalty should be compulsorily paid in cash. |
| Table 8 | Refund claimed from electronic cash ledger | The details will be auto-populated from electronic cash ledger. |
| Table 9 | Verification | A taxpayer has to verify the information provided by signing the return and filing the same. |
NOTES ON MAIN RETURN:
- A taxpayer who has made supplies to consumers and un-registered persons (B2C) and to registered persons (B2B) in the domestic market only can file this return.
- Input tax credit availed earlier during the first two months of the quarter will be adjusted from the claim. If the balance of claim turns out to be negative, then it will be added to the liability for the same quarter.
- Tax paid during the first two months of the quarter will be adjusted against the total liability of the quarter.
- Payment can be made out of cash or credit as per rules.
- Reversal of credit under rule 37, 39, 42 & 43 shall be reported as net of reclaimed ITC if any. Ineligible credit shall also be reported under reversal.
- Adjustment in ITC, if any due to transition from the composition scheme or otherwise shall be reported in table 4.
All about the system of Invoice upload
The recipients from these small taxpayers can avail input tax credit based on the invoice uploaded by the supplier and therefore, the small taxpayers would be given online facility to continuously upload and view invoices on a daily basis. The invoices uploaded by 10th of the following month would be available as input tax credit to the recipient in the relevant month similar to a large taxpayer who file monthly returns.
When must GST SUGAM be filed?
GSTR Sugam shall be filed quarterly. But the taxpayer has to pay tax monthly.
How to differentiate between SUGAM, SAHAJ and Quarterly returns?
| Sahaj | Sugam | Quarterly returns |
| Applicable to small taxpayers making only B2C supplies | Applicable to small taxpayers making supplies only to consumers and other businesses (B2C and B2B) | Applicable to small taxpayers making exports, imports, supplies to B2C, B2B, SEZ, etc. |
| Sahaj is a predetermined profile of the quarterly return. | Sugam is a predetermined profile of the quarterly return. | This is not a predetermined profile but a taxpayer will have the option to create a profile to file through this return. |
All you need to understand about the New Simplified GST Returns
Quick Summary
A simplified GST returns filing mechanism called GSTR Sugam is introduced for taxpayers with a turnover below Rs. 5 crores. The new GST return system will be implemented from October 2020, with quarterly filing options for small taxpayers. GSTR Sugam comprises 2 annexures and main return with information on outward and inward supplies, ITC claims, TDS/TCS credits, tax payment, and refund claims.
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